Polygon price analysis: MATIC posts bullish hammer pattern and could soar past $1


Polygon price analysis has turned bullish today, as price racked up more than 5 percent to move as high as $0.73 over the past 24 hours. Since the extensive market crash from earlier in May, MATIC has gained over 40 percent since the low of $0.52 on May 12, 2022. Major technical indicators for the current trend point towards a rally up to $2.10. Buy stops are placed at $0.51 while buyers are expected to hold for now and consolidate upwards. The upward trend may face resistance past the $1 mark as the overall market currently faces greater uncertainty and volatility than before the crash.

The larger cryptocurrency market showed mixed fortunes over the past 24 hours, as Bitcoin stayed just shy of the $30,000 mark. Ethereum consolidated above $2,000, while major Altcoins largely showed minor downtrends. Cardano dropped slightly to $0.56, similar to Solana’s move down to $54.51. Ripple increased 1 percent to $0.42 and Dogecoin to $0.08. Polkadot dropped 1 percent to $10.65, whereas Litecoin posted the biggest increment in the market, soaring 7 percent to reach up to $71.78.

Polygon price analysis: Cryptocurrency heat map. Source: Coin360

Polygon price analysis: Bullish divergence appears on daily chart

On the 24-hour candlestick chart for Polygon price analysis, price can be seen forming a bullish hammer pattern with consecutive green candlesticks highlighting the current upward trend. After a 56 percent decline since May 5, 2022, MATIC has formed a strong recovery over the past 6 days and is now in line to test resistance at the dollar mark. The market valuation shown by the 24-hour relative strength index (RSI) sits at 35.56 and is currently on the up. A 27 percent drop in trading volume was observed over the past 24 hours, suggesting that the dominant trade at current trend is of holding.

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Polygon price analysis: 24-hour chart. Source: Trading View

Price currently sits on the cusp of the crucial 50-day exponential moving average (EMA) and could break out further once this point is achieved. Furthermore, the moving average convergence divergence (MACD) curve can be seen attempting a bullish divergence and is set to move above the neutral zone, forming lower highs. Conversely, a daily close below the $0.67 mark could invalidate the bullish thesis and bring bearish flags into the market. This could recede MATIC price down towards the $0.52 support level.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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